Good-Enough ESG Data Won’t Cut It Anymore

Producing reliable and consistent ESG information requires an enterprise-wide approach.

How an Enterprise Risk Management (ERM) approach can help with your ESG reporting

Corporate America faces growing pressure to anticipate and measure environmental, social and governance (ESG) risks and opportunities.

New and pending regulations from the US Securities and Exchange Commission (SEC) and the European Securities and Markets Authorities (ESMA) may impose penalties on companies that fail to disclose this data and have it assured by a third party.

Unfortunately, many companies aren’t ready for this shift. In a 2022 study of 300 US companies commissioned by KPMG, fewer than 15% of respondents said their ESG reporting had attained maturity in compliance, data controls, risk analysis and oversight.

“The crux of the issue is a lack of integration of sustainability teams and the rest of the business. The goal is not simply a compliance exercise—to tick the boxes—but also to add or enhance value. That requires the ESG function to be integrated into strategy. And implementing strategy requires the entire enterprise.”

- Maura Hodge, ESG Audit Leader, Audit, KPMG US

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Maura Hodge

Maura Hodge

ESG Audit Leader, KPMG US

+1 803-606-8370
Ivor O’Neill

Ivor O’Neill

Advisory Managing Director, Internal Audit & Enterprise Risk, KPMG US

+1 614-241-4636
Joseph P Gyengo

Joseph P Gyengo

Principal, US Enterprise Risk Management Leader, KPMG US

+1 404 520 5327